How Much Does Furnace and AC Replacement Cost in Minneapolis, MN? [2026 Data]

The average cost to replace a furnace and AC in Minneapolis, MN, is $7,860, and most residents pay somewhere between $5,240 and $13,100. Your exact cost will depend on many factors, including the type of system, the capacity of the system, and the type of system you’re replacing. You may see much higher costs if your Minneapolis, MN HVAC technician finds that your ductwork needs alterations or replacement.

Furnace and AC Replacement Cost Factors

The lowest price residents in Minneapolis, MN, have paid for a full HVAC system replacement is $2,620, and some projects can climb as high as $15,720. The type and size of the system you’re installing are the two biggest cost factors to consider.

Type of HVAC System

There are four primary types of HVAC systems, including split systems, duct-free systems, which are often called mini-splits, hybrid systems, and packaged heating and air systems. The typical cost ranges for each in Minneapolis, MN, are as follows:

• Split systems: $4,000–$7,900

• Duct-free systems: $2,100–$15,200

• Hybrid systems: $2,600–$10,500

• Packaged heating and air systems: $10,500–$14,700

Split systems are the most popular types of HVAC systems in Minneapolis, MN, largely because they’re the most versatile for areas that see hot summers and cold winters. However, some residents upgrade to hybrid systems for maximum efficiency, as these use an electric heat pump during moderate temperatures but have a traditional gas- or oil-fired furnace as a backup for extreme winter temperatures, which are common in Minneapolis.

Unit Size

The square footage of your house will largely determine what size furnace and air conditioner you need to heat or cool your space efficiently. However, there are other factors involved, and a local HVAC company can help you determine what size you need exactly by doing a load calculation.

A professional assessment is the only way to get an accurate HVAC size estimate. However, you can get an idea of how your HVAC replacement cost will compare to the average in the area by comparing your home’s square footage to the average home size in the area. The average home size in Minneapolis, MN, is 1,900 square feet, so prices can be higher than average for much larger homes, or lower for smaller ones.

Unit Brand

HVAC equipment costs an average of $5,000, but the brand you buy can change this number. For example, brands like Amana or Coleman tend to come in the lower end of the spectrum at $3,150, while brands like Trane and York cost closer to $6,300 or more. Keep in mind that this is just for equipment, and labor is also a major factor to consider.

HVAC Pro Costs

When you hire an HVAC company in Minneapolis, MN, you can expect between 40% and 60% of your total to go toward labor alone, which means between $3,150 and $4,700. This cost is more than you’d pay in most other cities, mostly because the cost of living in Minneapolis, MN, is 16% higher than the national average, and the local cost of living drives labor costs.

Your professional will also pass permit fees onto you, and since the City of Minneapolis requires permits for all major changes to mechanicals, you’ll always need one when you’re replacing your system. Permit fees can vary based on the amount of work you need done, but they average $216.60.

Does Replacing Your AC and Furnace Increase Home Value?

Yes, replacing your AC and furnace will usually improve your home value by a few thousand dollars, as the average return on investment (ROI) for this project is 30%.

In a place like Minneapolis, MN, where summers can hit temperatures in the 90s and winters routinely come with extreme temperatures, investing in a high-efficiency system, while more expensive upfront, can help maximize your ROI and home value. These will also help extend the lifespan of your furnace and can save you money on heating and cooling bills over time.

How Angi Gets Its Local Cost Data 

To help homeowners plan their next project, Angi provides readers with carefully researched cost data and upholds strict editorial standards. We start with national average project costs, which we collect by analyzing competitor information, retailer material costs, and input from professional contractors. We then apply local price index data to calculate location-specific estimates that reflect what homeowners typically pay in their local area. To do that, we use data from the U.S. Bureau of Economic Analysis (BEA), including its Regional Price Parities (RPPs), which measure price differences across cities. This helps us account for differences in labor, materials, and overall cost of living, so estimates in higher- or lower-cost areas better reflect real-world local pricing.

Every estimate undergoes a thorough editorial review to verify accuracy, consistency, and alignment with observed market conditions.

Want to help us improve our cost data? Send us a recent project quote to [email protected]. Quotes and personal information will not be shared publicly.